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Question 19 7.2 pts Rikin Mehta Manufacturing produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling
Question 19 7.2 pts Rikin Mehta Manufacturing produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 130 100 % Variable expenses 52 40 % Contribution margin $ 78 60 % The company is currently selling 6500 units per month. Fixed expenses are $209,000 per month. The marketing manager believes that a $7200 increase in the monthly advertising budget would result in a 120 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? O decrease of $9360 O decrease of $2160 increase of $9360 O increase of $2160
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